Nigeria won a $6.2 million arbitration case against the European Dynamics UK Limited, an international technology contractor.
Nigeria had entered into a dispute with the international technology contractor through the Bureau of Public Procurement (BPP).
This was contained in a statement by Kamarudeen Ogundele, Senior Assistant on Communication and Publicity to the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN).
The ministry said the European Dynamics UK Limited entered into a dispute with the BPP over a national e-Procurement project.
It noted that the ruling, which is final and not subject to appeal, was dismissed by Funmi Roberts, the Sole Arbitrator, when the tribunal sat at the International Centre for Arbitration and Mediation in Abuja.
The statement said: “The tribunal dismissed the contractor’s claims in their entirety, relieving Nigeria of potential financial exposure estimated at over 6.2 million dollars (approximately ₦9.3 billion) in claimed payments and damages.
“The European Dynamics UK Ltd had claimed approximately $2.4 million for alleged milestone completions, $3 million in general damages and an additional $800,000 settlement claims.”
It added that the Director-General of the BPP, Dr. Adebowale Adedokun, inherited a stalled technology project together with ongoing arbitration proceedings upon resumption in office.
Prior to Adedokun’s appointment, there had been discussions around an out-of-court settlement, but the bureau elected to continue with the arbitral process, maintaining that payments must be tied strictly to demonstrable value delivered.
The underlying contract concerned the design, development, customisation, supply, installation and maintenance of a national electronic Government Procurement (eGP) system financed with support from the World Bank.
The project aimed to strengthen transparency, accountability and efficiency across federal public procurement processes.
Central to the dispute was the User Acceptance Test (UAT).
The UAT carried out by the BPP identified significant functional deficiencies, including critical omissions and errors affecting system performance.
The bureau argued that unlike conventional supply contracts where delivery may occur upon physical handover, software customisation projects are performance-validated.
That delivery crystallises only upon satisfactory UAT confirming that the system operates in accordance with the technical requirements, statutory workflows, and operational environment for which it was commissioned.
The ministry noted that the tribunal accepted Nigeria’s position that these deficiencies fell within the vendor’s responsibility to remedy at no additional cost.
It further held that the contractor, as the technical expert, bore the obligation to ensure that the delivered system complied with contractual requirements irrespective of earlier technical documents that might have been approved by the BPP.
The tribunal also found no evidence that the bureau consented to the merger of multi-phase modules into a single phase and nothing in the contract suggests that such a merger is permissible, particularly given that payment is structured in phases.
Consequently, the tribunal dismissed all claims by European Dynamics UK Limited in their entirety and ruled that the contractual framework was distorted.
The ministry also noted that Adedokun, during a formal presentation of the award to the Minister of Justice, described the outcome as an important signal for public sector technology contracting.
